Thursday, December 5, 2013

How Do Payday Loan Companies Verify Your Identity?

Payday loan companies are designed to offer short term loans to consumers. The loans are meant to help a consumer out in an emergency. The bulk of payday loan customers are unable to obtain a loan from a traditional funding source. Payday loan companies will require a great deal of information from a potential borrower to verify their identity. This verification process is designed to protect both the payday company and the borrower.

Picture Identification:

An US borrower will need to produce a valid picture identification card. The two most common forms accepted by a payday loan company are a driver's license or a state issued identification card.

Paycheck Stub:

Anyone applying for a payday loan will have to bring a paycheck stub with them. Most payday companies will require a minimum of two current paycheck stubs. They will use the paycheck stubs as a means to verify the borrower's identification card matches the name on their paycheck. The stub is also used to verify sufficient income.

Employment Verification:

Another way, payday loan companies verify a borrower's identity is through employment verification. The potential borrower is required to fill out an application, stating their place of employment and the phone number of their employer. The payday loan company will double check to verify the employment phone number in their database matches the one provided by the potential borrower. This is done to guarantee the borrower is who they say they are, and that they truly work at that location.

Verification Of Bank Account:

The final step in verifying a borrower's identity is through a bank account. A borrower who lives in the USA will need to provide a minimum of two current bank statements.

These bank statements will indicate to the payday company, whether or not, the potential borrower bounces checks and has an account in good standing. The payday company will use the phone number they have on file to call the bank, and verify the account is active.

The preceding for identity verification steps are designed to protect the loan company and the borrower from scam artists. Some potential payday loan customers feel the verification process is intrusive, but it is for their benefit.

When you apply online you will be asked to fill in the online application form. There you must mention the number of your identity card, driver license if you have one, SSN, job title, bank details etc. It is not required to upload any documents with your photo. But submitted information will be checked and you will have a notification if your loan application is processed.read more=>